Capital One To Sell Best Buy Card Portfolio

Capital One To Sell Best Buy Card Portfolio
Capital One and Best Buy End Credit Card Partnership
PR Newswire
MCLEAN, Va., Feb. 19, 2013
MCLEAN, Va., Feb. 19, 2013 /PRNewswire/ --Capital One Financial Corporation
(NYSE: COF) today announced that it has reached an agreement to sell the
portfolio of Best Buy private label and co-branded credit card accounts, with
current loan balances of approximately $7 billion, to Citi. In addition,
Capital One and Best Buy have agreed to end their contractual credit card
relationship early.
The sale of the loans to Citi, which is subject to customary closing
conditions, and early termination of the Best Buy partnership are expected to
be finalized in the third quarter of 2013. Upon closing, Capital One expects
that the proceeds from the sale will approximate the book value of the
accounts, resulting in no significant gain or loss on the transaction.
"We have a proven, scale partnerships infrastructure and a great portfolio of
partners," said Capital One's Bill Cilluffo, EVP, Card Partnerships. "Our
partnerships business continues to deliver strong contributions to our results
and serves as a platform for future growth potential."
Forward Looking Statements
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act giving Capital One's expectations
or predictions of future financial or business performance or conditions.Such
forward-looking statements include, but are not limited to, statements about
the projected impact and benefits of the transactions described in this press
release, including future financial and operating results, timing of closing,
the company's plans, objectives, expectations and intentions and other
statements that are not historical facts. These forward-looking statements are
subject to numerous assumptions, risks and uncertainties which change over
time. Factors previously disclosed in our filings with the U.S. Securities
and Exchange Commission (the "SEC") could cause actual results to differ
materially from forward-looking statements or historical
performance.Forward-looking statements speak only as of the date they are
made, and Capital One assumes no duty to update forward-looking statements.
In addition to the factors previously disclosed in Capital One's filings with
the SEC, the following factors, among others, could cause actual results to
differ materially from forward-looking statements or historical performance:
the possibility that conditions to the transactions are not received or
satisfied on a timely basis or at all; the possibility that modifications to
the terms of the transactions may be required in order to obtain or satisfy
such conditions; and changes in the anticipated timing for closing the
transactions.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding
company whose subsidiaries, which include Capital One, N.A., and Capital One
Bank (USA), N. A., had $212.5 billion in deposits and $312.9 billion in total
assets outstanding as of December 31, 2012. Headquartered in McLean, Virginia,
Capital One offers a broad spectrum of financial products and services to
consumers, small businesses and commercial clients through a variety of
channels. Capital One, N.A. has more than 900 branch locations primarily in
New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of
Columbia. A Fortune 500 company, Capital One trades on the New York Stock
Exchange under the symbol "COF" and is included in the S&P 100 index.
SOURCE Capital One Financial Corporation
Website: http://www.capitalone.com
Contact: Tatiana Stead, +1-703-720-2352, Tatiana.Stead@capitalone.com; or
Julie Rakes, +1-804-284-5800, Julie.Rakes@capitalone.com